Criteria... Preference for Option 1 or 2

• Price: 70K-100K
• Type: Duplex > Apt. on top of Commercial > Single Family Home
• Zoned in historic district (tax credits: 20% residential, 50% commercial)
• Outside of 500-year Flood Zone
• Inspection: Make offer, with contingency on $500 inspection
• Lawyer: pay $500 for contract fees

Rent vs. Purchase: Renting for a year will total to about 10% of the value of a home. Better to purchase, improve, and sell if needed for appreciated value.

PROCESS

1. Mortgage: Get pre-approved for up to $150K house (best interest rate, down payment assistance)
2. Tour houses until I find one I like
3. Optional: Get pre-inspection done ($~450) - don’t do this because market moving so fast
4. Make Offer (with contingency of inspection finding no major problems, appraisal within 10K range of offer)

• Option 1
  1. Own: Duplex (2 units)
  2. Lease: Downtown Commercial Property
  3. Pros: generate rental income to offset mortgage, continue to prototype programs in existing spaces (Library, Bakeshop) before opening my own space — ability to offer private artist-residency in 2nd unit. Experiment with Landback.
  4. Cons: added landlord duties, low rent might not cover the added maintenance costs, higher taxes
• Option 2
  1. Own: Commercial (Ground Floor) + 1 Residential Unit (Upper Floor)
  2. Pros: whole life-project settled in one building, less to keep track of.
  3. Cons: might be difficult to treat the commercial floor as a separate space connected to an LLC ? no rental income, unless I rent out the commercial space?
• Option 3
  1. Own: Single Family Home (1 unit)
  2. Lease: Downtown Commercial Property
  3. Pros: Less to keep track of - treat it basically as a place I’m renting while I figure out the rest. If I end up not wanting to stay, I can rent it out.
  4. Cons: No rental income